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A ‘Fundamental Regime Shift’ Could Be Underway as Investors Rethink U.S. Assets, ECB Says

On January 30, 2025, the European Central Bank’s second-in-command cautioned in Frankfurt that financial markets might be experiencing a significant structural shift amid increasing volatility.
The change reflects heightened international trade disputes triggered by U.S. Tariff measures, prompting investors to reconsider the risks tied to U.S. Assets and contributing to greater market volatility.
The ECB noted that euro area market functioning remained stable despite volatility, but de Guindos highlighted elevated valuations and economic risks, emphasizing tariffs' negative impact on growth.
De Guindos stated, "tariffs would be detrimental to growth," while an ECB report noted that trade openness has stagnated since 2008, reflecting growing skepticism toward globalization.
The increasing trade-related uncertainties may slow economic growth, threaten financial stability, and require banks to regularly assess risks amid geopolitical and market challenges.

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CNBC

Center

A ‘fundamental regime shift’ could be underway as investors rethink U.S. assets, ECB says

In its latest Financial Stability Review, the central bank discussed the recent spike in market volatility.

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Center

Trade Dispute: ECB Fears for Stability of the Euro

Trump's customs policy, the burden of high defence spending and a changing geopolitics threaten the financial system in the euro area. The ECB comes to this conclusion.

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ECB Warns of Ripple Effects From Investors Questioning US Assets

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3 days ago·United States

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Anadolu Ajansı

Right

Trade tensions could threaten global financial stability, lower economic growth: ECB

Increased uncertainty has potential to redirect trade flows, reconfigure value chains, deter investment and dampen economic growth, ECB report says - Anadolu Ajansı

4 days ago·Ankara, Türkiye

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diarioestrategia.cl

Trade and Defence Uncertainty Can Test Financial Stability, According to ECB

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3 days ago

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